Otolith Labs Raises $20 Million Series A Financing

Otolith Labs is $20 million richer these days.

The company has closed a $20 million Series A financing round led by Morningside Ventures. Building on prior investments from businessman Mark Cuban and leading ENT physicians, the proceeds will be used to support the company’s ongoing clinical programs, anticipated U.S. Food and Drug Administration (FDA) approval and first commercial launch of a prescription wearable device using its noninvasive Vestibular System Masking (nVSM) technology for treating chronic vertigo.

“The closing of our Series A financing led by the expert team of investors at Morningside and the continued support of our existing investors underscores the growing momentum for the first wearable solution for a debilitating problem that adversely affects millions of Americans,” said Sam Owen, CEO and Founder of Otolith Labs. “The responders in our pilot studies reported instantaneous relief from their vertigo symptoms. The data from those studies support our plan to release our nVSM technology as an effective and well tolerated therapy for chronic vertigo. We founded the company to improve lives and with Morningside’s support, we are on the path to make this vision a reality.”
 
Otolith Labs’ nVSM technology is designed to provide immediate symptom relief for chronic vertigo. nVSM applies localized mechanical stimulation to the vestibular system through calibrated vibrations. The company received FDA Breakthrough Device Designation last year for the prescription treatment of chronic vertigo. This designation, which can accelerate the development, assessment, and review of medical devices for pre-market approval, is only granted for devices that address an unmet need and show the potential to provide more effective treatment of life-threatening diseases or irreversibly debilitating conditions. Otolith Labs will soon be enrolling participants for its pivotal study to further evaluate the effectiveness of nVSM as a treatment of chronic vertigo.

“Otolith Labs’ mission is to make daily living easier for the millions of Americans suffering from the symptoms of chronic vertigo and other vestibulogenic conditions. Chronic vertigo is a condition that prevents people from performing activities of daily living and has significant quality of life and economic impact,” said Anthony Aiudi at Morningside Ventures. “The team at Otolith Labs has developed a technology that could change how chronic vertigo is treated today. Otolith Labs is leading the charge in developing a noninvasive and non-pharmacological therapy for those who have chronic vertigo and we look forward to being a part of this journey.”
 
In Otolith’s pilot studies, which enrolled approximately 100 subjects, nVSM showed an immediate and robust therapeutic benefit over placebo, with those in the active group more than three times as likely to report improved symptoms than those in the placebo group (p > 0.05). Otolith is working closely with the leaders of the otolaryngology and medical community to ensure the rapid development and future adoption of this therapy to improve patients’ lives.
 
“As someone who sees chronic vertigo patients on a regular basis, I know how frustratingly few and effective treatment options are available today. I have been following Otolith Labs for 5 years and I am very encouraged by their development progress of their treatment for this debilitating condition,” said Dr. Michael Hoffer, professor of Otolaryngology and Neurological Surgery at the University of Miami’s Miller School of Medicine.
 
Otolith Labs is developing prescription medical devices for the treatment of vestibular disorders. Its flagship product, a patented noninvasive Vestibular System Masking (nVSM) technology, is intended to be the first prescription wearable device for the treatment of chronic vertigo, a symptom that affects more than 4 million Americans. The device uses precisely tuned vibrations to interact with the acceleration sensors in the inner ear, mitigating the symptoms of vertigo. 
 
Founded in 1986 by the Chan family, Morningside is a technology and life science venture investment firm. With offices in Boston, Shanghai, and London, the firm invests globally.